by Dan Mitchell | Nov 11, 2018 | Blogs, Economics, Free Market
I periodically explain that labor and capital are the two factors of production and that our prosperity depends on how efficiently they are allocated. But I probably don’t spend enough time highlighting how they are complementary, meaning that workers and capitalists...
by Dan Mitchell | Nov 10, 2018 | Blogs, Economics, Trade
Last month, I explained why trade deficits don’t matter. I make the same point in this short video from Freedom Partners. Near the end of the video, I pointed out that unfettered trade is good, whether with your neighbors or with people in other nations. And I also...
by Dan Mitchell | Nov 6, 2018 | Blogs, Economics
The theory of “economic convergence” is based on the notion that poor nations should grow faster than rich nations and eventually achieve the same level of development. This theory is quite reasonable, but I’ve pointed out that decent public policy (i.e., free markets...
by Dan Mitchell | Nov 5, 2018 | Blogs, Economics
Brazil appears to be a tragic example of what happens when societal capital erodes (or never gets established in the first place) and too many people in the country see government as a vehicle for redistribution. That environment leads to statist policies. Which...
by Dan Mitchell | Nov 4, 2018 | Blogs, Economics, Taxation
There are three reasons why the right kind of tax reform can help the economy grow faster. Lower tax rates give people more incentive to earn income. Less double taxation boosts incentives to save and invest. Fewer loopholes improves incentives for economic...
